Stock Based Awards
|3 Months Ended
Mar. 31, 2023
|Share-Based Payment Arrangement [Abstract]
|Stock Based Awards
Equity Incentive Plans
The Company adopted an equity incentive plan in 2007 (the “2007 Plan”). The 2007 Plan has expired and the Company no longer issues any awards under the 2007 Plan. As of March 31, 2023, there is of outstanding incentive stock options granted under the 2007 Plan that are eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the fair market value of such stock on the date of grant. The maximum term of options granted under the 2007 Plan was ten years.
The Company adopted a second equity incentive plan in 2015 (the “2015 Plan”) under which shares of common stock have been reserved for issuance to employees, and nonemployee directors and consultants of the Company. Recipients of incentive stock options granted under the 2015 Plan shall be eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2015 Plan is ten years. On June 16, 2021, the Company’s stockholders voted to approve an amendment to the 2015 Plan to increase the number of shares of common stock authorized for issuance under the 2015 Plan from to shares. As of March 31, 2023, shares remain available for future grants under the 2015 Plan.
In July 2022, the Compensation Committee of the Company’s Board of Directors granted a total of stock options with a fair value of $ effective as of July 26, 2022. The Company granted the stock options to directors, executives, employees, and consultants. .
The Company accounts for share-based awards to employees and nonemployee directors and consultants in accordance with the provisions of ASC 718, Compensation—Stock Compensation., and under the recently issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, share-based awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service, or vesting, period. The Company values its equity awards using the Black-Scholes option pricing model, and accounts for forfeitures when they occur. During the period ended March 31, 2023, the Company did not grant any stock options. For the three months ended March 31, 2023 and 2022, equity-based compensation expense recorded was $ and $ respectively.
As of March 31, 2023, there was approximately $ of total unrecognized compensation expense related to non-vested stock options that is expected to be recognized over a weighted average period of years. For options granted and outstanding, there were options outstanding which were fully vested or expected to vest, with an aggregate intrinsic value of $ , a weighted average exercise price of $ and weighted average remaining contractual term of years at March 31, 2023. For vested and exercisable options, outstanding shares totaled , with an aggregate intrinsic value of $ . These options had a weighted average exercise price of $ per share and a weighted-average remaining contractual term of years at March 31, 2023.
The aggregate intrinsic value of outstanding and exercisable options at March 31, 2023 was calculated based on the closing price of the Company’s common stock as reported on The Nasdaq Capital Market on March 31, 2023 of $ per share less the exercise price of the options. The aggregate intrinsic value is calculated based on the positive difference between the closing fair market value of the Company’s common stock and the exercise price of the underlying options.
Common Stock Reserved for Future Issuance
The following table presents information concerning common stock available for future issuance (in thousands) as of: